Question

1. (a) Mr Deepanshu, a 35 years old Indian citizen and resident in India in the previous year.
He is conducting three different business activities (speculative and non-speculative).
He also has income and losses from House property, capital gains and other sources.
He is confused in setting-off and carry forward of losses from different sources among
different heads on intra head and inter head basis. Help and guide him.​

Answer 1

Answer:

here is your answer

He is conducting three different business activities (speculative and non-speculative).

He also has income and losses from House property, capital gains and other sources.

He is confused in setting-off and carry forward of losses from different sources among

different heads on intra head and inter head basis. Help and guide him.

Answer 2

Mr. Deepanshu needs to check various restrictions while making adjustments to profits and losses

The correct recommendations for Mr. Deepanshu are -

• If the income from a given source ( property, capital gains) is excluded from tax, then the loss from the source can not be offset against any other income being taxable.
• If Mr. Deepanshu has suffered losses from any source under a specific income head in any year, then he is entitled to charge the loss against income from any other source falling under the same head.
• Long-term capital loss is applied only for long-term capital gains. Thus,  he can offset both long-term capital gains and short-term capital losses against a short-term capital loss.
• He can also balance the expenses of his other businesses against the income of the listed companies